Anti-Money Laundering


    Anti-Money Laundering Legislation and Guidance

    Money laundering is criminalized primarily by means of the Prevention of Money Laundering Act (Cap. 373) which has adopted an “all crimes” approach. Drug-related money laundering is additionally criminalized through the Dangerous Drugs Ordinance (Cap. 101) and the Medical and Kindred Professions Ordinance (Cap. 31).

    The Prevention of Money Laundering Act also establishes the Financial Intelligence Analysis Unit (FIAU).

    The Prevention of Money Laundering and Funding of Terrorism Regulations (LN 180/2008) implement the provisions of Directive 2005/60/EC of the European Parliament and of the Council of 26 October 2005 on the prevention of the use of the financial system for the purposes of money laundering and terrorist financing and of Directive 2006/70/EC of the European Commission of 1 August 2006 laying down implementing measures. The regulations contain detailed provisions on the measures and procedures to be maintained and applied by subject persons, including customer due diligence measures, record keeping procedures and reporting procedures, and identify the subject persons to whom such measures and procedures are applicable.

    The Prevention of Money Laundering Act and the Prevention of Money Laundering and Funding of Terrorism Regulations are supplemented by the Implementing Procedures issued by the FIAU. The Implementing Procedures provide an interpretation of the regulations and their purpose is to guide and assist subject persons in understanding and fulfilling their obligations under the regulations, thus ensuring effective implementation thereof. The Implementing Procedures are binding on subject persons and failure to comply is subject to an administrative penalty.

    Main Legislation | Subsidiary Legislation | Related Legislation | FIAU Implementing Procedures


    Main Legislation
    Prevention of Money Laundering Act Cap. 373
    Various Financial Services Laws (Amendment) Act, Act XXXI of 2017 
     

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    Subsidiary Legislation
    Civil Code (Second Schedule) (Register of Beneficial Owners – Foundations) Regulations, S.L 16.15
    Civil Code (Second Schedule) (Register of Beneficial Owners – Associations) Regulations, S.L 16.16
    Prevention of Money Laundering and Funding of Terrorism Regulations, S.L. 373.01
    Trusts and Trustees Act (Register of Beneficial Owners) Regulations, S.L 331.10
    L.N. 117 of 2018 – National Coordinating Committee on Combating Money Laundering and Funding of Terrorism Regulations, 2018 
     

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    Related Legislation
    Civil Code, Chapter 16 
    Criminal Code, Chapter 9
    Dangerous Drugs Ordinance, Chapter 101  
    Medical and Kindred Professions Ordinance, Chapter 31
    Professional Secrecy Act, Chapter 377
     

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    Related External Links
    Implementing Procedures, Part I
    Implementing Procedures, Part II, Banking Sector
    Implementing Procedures, Part II, Land-Based Casinos 
    Submission of a Suspicious Transaction Report
     

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